In a strong indication of the profits on the table in the US sports betting sector, BetMGM has revised upwards its guidance for fiscal year 2025 net revenue, from $2.4 billion-$2.5 billion to at least $2.6 billion. 

BetMGM is a joint venture between MGM Resorts International (NYSE: MGM) and UK-listed Entain (LON: ENT). The trading update, reported on June 16, was enough to send the shares of Entain skyward, up 15.2% on the day to £8.56p ($11.76), while MGM Resorts stock climbed 8% to $34.30. 

Entain PLC ADR also trades in the US over-the-counter under the tickers GMVHY and GMVHF.

A global sports betting business, Entain owns numerous other brands, including BetCity, bwin, Ladbrokes and Coral.

Since the US Supreme Court ruled in 2018 that the prohibition on sports gambling was unconstitutional, the sector has exploded. US sports betting is now legal in 40 states and generated revenues of $13.78 billion in 2024 (not including the sportsbook operations of tribal casinos), according to Statista.

US online and offline sports betting market size is forecast to reach $19.8 billion by the end of 2025, with a compound annual growth rate of 10.9% set to see that top $33.2 billion by 2030, according to Grand Review Research. 

Fuelling the growth is online and mobile betting. The surging popularity of crypto-based iGaming is also powering expansion. 

Gaming revenue overall grew to $72 billion last year, an increase of 7.5% from 2023, according to the American Gaming Association.

BetMGM growth is accelerating

Digging down into the numbers, BetMGM reported Q2 trading as being “broadly consistent” with impressive Q1 growth of 34%. In July, Entain says it will divulge more details regarding BetMGM’s Q2 performance. 

BetMGM posted net revenue of $2.1 billion in FY2024, a year-on-year rise of 7% attributed to growth in its iGaming division.

In this article, we are concentrating on Entain stock because of its potential as a recovery play and the combination of value and momentum it presents. 

Although BetMGM is not one of the big five of the US sports betting world, measured by market capitalization, it nevertheless has the brand power and financial support of two big hitters: Entain and MGM Resorts International.

For instance, in the Grand Review Research report cited above, BetMGM is prominently mentioned despite its relatively small size compared to Flutter International (market cap $47.2 billion), DraftKings ($21.1 billion) or FanDuel. The report notes that BetMGM “through its joint venture structure, combines retail presence with digital scalability.”

FanDuel is jointly owned by Flutter Entertainment, Boyd Gaming (market cap $6.35 billion) and Fox Corporation (market cap $24 billion). 

Entain is turning the corner after regulatory pain, helped by new CEO Stella David

Entain has had its difficulties of late, and that’s what gives rise to the mispricing opportunity. The company could be set for a positive rerating for several reasons.

First off, the company has new leadership that augurs well. Then, there’s its primary listing on the London Stock Exchange. Could there be a move to the NYSE on the near horizon? That would bring a flood of new liquidity into the trading of its shares.

For sure, there are things not to like about Entain, such as its debt burden and a history of stubborn underperformance. But, could a move to the NYSE be the shot in the arm that enables the firm to bring its experience with sports books more into play in BetMGM’s ongoing expansion plan execution?

Entain has had three different CEOs since December 2023. Stella David took over from Gavin Issacs, who was in post for a mere five months following the resignation of Jette Nygaard-Andersen. She was forced out by the bribery scandal involving a Turkish firm that was part of the group. For that, Entain was slapped with a £585 million ($803 million) penalty.

David has been the company’s interim CEO since February and is a former chair of the board. David has extensive business experience having spent 15 years in c-suite roles at Bacardi. By all accounts, she made a pivotal contribution in growing the business. 

She has been at Entain for three years and continues as a non-executive director at Domino’s Pizza and Norwegian Cruise Line Holdings. She is also the chair of Vue, a cinema chain.

In a statement of intent when she took up the CEO role, David placed US online sports betting at the center of Entain’s growth strategy, in addition to renewed efforts in new markets such as Brazil.

BetMGM the $500m earnings jewel in Entain’s crown?

If the BetMGM update is anything to go by, the shift in focus is paying off handsomely. Earnings before interest, tax, depreciation and amortization (EBITDA) earnings were also revised upwards to $100 million after previously not supplying a figure.

According to the upgraded guidance, EBITDA is expected to continue to improve and “further reinforce its confidence in future growth prospects and pathway to $500 million EBITDA in the coming years”. 

So what about the difficulties Entain management has been struggling with in recent times? Are they behind it now?

Well, the £585 million hit from the Turkish bribery case obviously stands out. But in 2022 there was also a fine of £17 million ($23) imposed by the UK regulator, the Gambling Commission, for lax player safety and anti-money laundering (AML) compliance. And in 2024 the Australian regulator sued the Entain subsidiary for breaches of AML rules.

These regulatory issues have undoubtedly soured investors on the firm, but David’s new path forward looks like it could be the inflection point long-suffering bulls have been waiting for.

Market is not pricing in ‘improving trends’

Looking at BetMGM’s business operation, the positive bottom-line outcomes show that it is successfully leveraging the strengths of both parties in the joint venture. Entain brings its technological prowess to the business, while MGM Resorts International provides the customer-facing expertise.

Stock analyst Graham Neary says he would prefer to see a reduction in net debt and an improvement in profitability before taking a positive view on the stock. 

For sure, net debt is high at £3.5 billion and the stock could be a momentum trap. For instance the stock’s return on capital ranking is 40th out of 47 in the FTSE’s hotels and entertainment services sector at -3.1%. 

However, net profit in 2025 is estimated to come in at £305 million, bouncing back from the £453 million ($622 million) loss in 2024, the year of that multimillion-dollar bribery penalty, so a one-off writedown. Forecasts for 2026 have net profit climbing higher still to £431 million, which would be up 41%.

In the opposite camp to Neary, Greg Johnson, an analyst at Shore Capital, reckons Entain is undervalued by the market, which is “failing to reflect the improving trends”.

With company delistings from the London Stock Exchange threatening to turn into a flood, Entain is likely to be a candidate for a lucrative transatlantic exit.  

Takeover bids incoming? Entain stock could rocket

It’s not just the prospect of a US listing that has savvy investors salivating. A history of Entain being subject to hostile takeover bids indicates, given recent positive trading news, that more such moves are to be expected. 

DraftKings offered £16.2 billion for Entain back in 2021. Entain’s market capitalization today is £5.2 billion ($7.15 billion). If DraftKings was willing to pony up that sort of money in 2021 for what turns out to be an overly priced valuation, it would probably still be in the market at a much lower valuation. 

Then there are the activist investors sharks thought to be circling. Among them are hedge funds Sachem Head Capital Management, Corvex  Management and Eminence Capital.

Eminence Capital’s Ricky Sandler was behind pushing the board to dump Jette Nygaard-Andersen, the CEO prior to Issacs. Sandler was a big critic of Entain’s £594 million purchase of STS Holding S.A., a Polish sports betting company.

Brokers have an average target price of 987.8p on Entain, 15.51% above the current price, with an outperform consensus rating. 

The post Entain Stock On The Rise As BetMGM Announces Improved Guidance Figures appeared first on CasinoBeats.

The budget was passed late on May 31, the last day of the 2025 legislative session. It now heads to Illinois Gov. J.B. Pritzker’s desk for a signature.

The governor has indicated he will sign the budget. He even praised it as the “seventh consecutive balanced budget that continues to get the state’s finances back on track.”

New Tax on Every Sports Betting Wager

The approved budget includes an anticipated $800 million in increased tax revenue. With Gov. Pritzker indicating he would veto a budget with an increase in tax on individuals, corporations, or the sales tax, lawmakers targeted industries like sports betting to raise funds.

Under the new tax, operators will pay 25 cents on the first 20 million bets placed on their platforms. After that threshold, the tax increases to 50 cents per bet. Estimates are that this initiative will bring $36 million annually.

Industry analysts, such as Truist analyst Barry Jonas and Jefferies analyst David Katz, suggest that the tax increase will have the most significant impact on DraftKings and FanDuel.

Katz also warns that operators might pass the increased costs to bettors through higher minimum bets. That could drive them to alternative platforms like Kalshi, a market prediction site which recently received a cease-and-desist letter from the Illinois Gaming Board.

The new tax increase has come as a surprise to operators. Lawmakers introduced it on the last day of the legislative session, giving them little time to respond.

Second Tax Increase for Illinois Sports Betting in a Year

Once Gov. Pritzker signs the budget, it will mean that Illinois sportsbooks will incur a second tax hike in a year. In 2024, Illinois introduced a graduated tax system:

• 20% for annual revenue of $0 to $30 million
• 25% for those generating $30 to $50 million
• Those with revenue between $50 million and $100 million pay 30%
• 35% for operators with annual revenue of $100 million to $200 million
• Over $200 million: 40%

Additionally, operators pay separate taxes for their retail and online sports betting operations. Before the 2024 increase, operators paid a flat 15% tax. As with the new tax hike, the most affected by the 2024 tax hike were DraftKings and FanDuel. The two market leaders saw their tax rate increase from 15% to 40%.

Higher Sports Betting Taxes Instead of Legalizing iGaming

While lawmakers were scrambling to find an additional revenue source, one potential source went unnoticed: the legalization of online casinos.

Mirroring efforts in 2023, Rep. Edgar González, Jr. and Sen. Cristina Castro introduced companion bills, known as the Internet Gaming Act, to legalize iGaming in the state.

Some estimates suggest that if legalized, online casinos could generate $450 million in tax revenue in their first year, which is over 10 times the estimated tax revenue for new sports betting.

Over time, that figure could reach $800 million. That is comparable to the iGaming market in Pennsylvania, which has a slightly higher population, a mature market, and an aggressive tax system.

Despite these projections and a signal from Gov. Pritzker that he would be open to the idea, the 2025 Internet Gaming Act failed to gain traction and advance past the committee stage.

Illinois Fails to Ban Sweepstakes Casinos

The end of the 2025 Illinois legislative session also means that sweepstakes casinos remain legal in Illinois.

In April, the Senate Gaming, Wagering, and Racing Committee inserted an amendment to a bill that targeted unlicensed retail sweepstakes machines, including online sweepstakes, which directly affected sweepstakes casinos.

Illinois is one of 12 states that introduced bills to ban the social gaming platforms. However, so far, only Montana has passed an official ban.

The post Illinois Raises Sports Betting Tax as Part of New Budget appeared first on CasinoBeats.

The big question now: will rival DraftKings follow suit, and could this become an industry standard?

Flutter Responds to Illinois Tax Hike

The FanDuel announcement comes as no surprise to many. On May 31, the Illinois legislature passed a new tax hike on every bet made in the state. Under the new tax, operators will pay 25 cents for every bet placed on their platforms up to the first 20 million bets. After that threshold, the tax increases to 50 cents per bet.

The 50-cent tax directly applies to FanDuel, the sports betting market leader in the US. While Illinois lawmakers believe that large corporations like FanDuel and DraftKings can afford the increase, the company doesn’t share their view.

In a press release, Peter Jackson, CEO of FanDuel’s parent company, Flutter, said:

“It is important to recognize that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth, and maximize revenue for states over time.”

Flutter stressed that this is the second tax hike in a year in Illinois. In 2024, FanDuel’s tax rose from 15% to 40%. The company emphasized that at the time, it made “extensive efforts” to absorb the cost without affecting its customers.

Flutter highlights that if Illinois decides to reverse its decision on the new tax, FanDuel will immediately remove the surcharge.

Flutter Investors Shrug Off The Surcharge News

After the Illinois tax news, Flutter’s stock dipped 2%, but investors seem to have welcomed FanDuel’s bold move. After the announcement, the stock closed on Tuesday up 1.5% at $267.52.

The rebound suggests that investors view FanDuel’s decision to pass the tax on to customers as a pragmatic and disciplined move, rather than a sign of financial weakness.

Analysts estimated that the new tax hike in Illinois would reduce Flutter’s US profits by $74 million annually. However, the surcharge announcement appears to have reassured investors that Flutter will protect margins.

In addition, Flutter reiterated that it expects to grow its group-wide profit by 35% to $3.18 billion, maintaining its forecasts. That news likely increased investor confidence as well.

Flutter’s move is also gaining approval from analysts. A consensus of 22 analysts suggests a one-year stock price target of around $300, implying a 12% increase from the current price. Twenty-one brokerage firms maintain an “outperform” rating for the company.

Meanwhile, gambling industry consultant and analyst Steve Ruddock sees the surcharge as a positive move for the company:

“FanDuel is doing the right thing by transparently showing its customers the cost and its source. Like a mom-and-pop store charging a credit card transaction fee, or a restaurant highlighting the meal tax on the receipt rather than raising menu items, transparency is always good.”

DraftKings Weighs Its Options

FanDuel’s main rival, DraftKings, experienced a 2.6% stock rise on Tuesday. That reflects optimism that the operator might avoid adding a surcharge, at least in the short term.

So far, DraftKings has been cautious. In an emailed statement, the company said that it “anticipates taking action and expects to share more information soon.”

But many analysts think a surcharge is inevitable. Jefferies analyst David Katz expects DraftKings to follow FanDuel’s decision:

“Given the structure of the tax, a surcharge is the most direct cost offset, and we view the move as a modest positive for the shares of the operators.”

Katz doesn’t expect either company to lose market share to smaller operators, which could also impose a surcharge. Combined, FanDuel and DraftKings take about 75% of the Illinois sports betting market.

Citizens’ gaming analyst estimates that the new surcharge will result in $79 million in new 2026 revenue for DraftKings (if it implements it), or 5.4% of its projected EBITDA. Meanwhile, FanDuel will generate $86 million, or approximately 2% of its 2026 EBITDA.

Could Per-Bet Surcharges Spread Nationwide?

FanDuel’s surcharge could be a turning point in the US sports betting industry. Once taboo, passing tax costs to consumers could become a standard practice for operators to resist tax hikes.

BMO Capital Markets analyst Brian Pitz said that Flutter’s move illustrates how operators might respond to regulation:

“New fees on every bet could drive users to leverage illegal operators who won’t add a fee (because they don’t pay state taxes), and are thus unaffected by the new IL per-bet tax.”

The risk of driving consumers to illegal offshore platforms is a concern of the industry. The Sports Betting Alliance, a trade group representing FanDuel, DraftKings, and other prominent operators, has repeatedly warned lawmakers that aggressive tax policies could drive consumers to illegal sites.

Illinois’ new policy could become a case study for other state legislatures. In response, operators will likely adopt a clear message: “If lawmakers impose per-bet taxes, expect us to pass them on to voters directly.”

FanDuel and its peers could use this weapon against tax hike proposals elsewhere. For example, Louisiana recently passed a bill that more than doubles the tax on sports betting.

Ohio is another state on the radar. An active bill in the Buckeye State proposes adding a 2% tax on total wagers placed in the state, in addition to the existing 20% tax on revenue (which was already doubled once, and there have been proposals for another increase).

Other examples include New York and Pennsylvania, which heavily tax operators.

Normalizing Consumer Fees?

However, while some industry observers warn of a consumer backlash, others believe the move is part of a broader pricing evolution.

Ruddock observes: “We live in a world where new fees or price increases occur frequently, including streaming subscriptions, ATM fees, and delivery charges, to name a few.”

He adds that it won’t have a significant impact on the consumer:

“This will have a near-zero impact on casual bettors. Casual bettors don’t go broke. They don’t have a bankroll that gets reduced to zero. They have jobs and dedicate a certain amount of their disposable income to betting. The only difference is that instead of betting $10 or $50 per week, they now bet $12.50 or $55.00 per week.”

Given the popularity of small wager parlays with potentially high returns, Illinois bettors may also simply absorb the impact themselves, given that multi-game wagers are often purely for entertainment purposes and to provide interest in a busy sporting calendar.

Déjà Vu: DraftKings Tried This First

FanDuel’s surcharge announcement is not a new idea. Ironically, the operator is doing what DraftKings tried and abandoned last year.

In 2024, facing Illinois’ first tax hike (from 15% to 40%), DraftKings announced plans to add a surcharge on winning bets in states with high tax rates of 20% or higher, such as New York, Pennsylvania, Illinois, and Vermont.

However, the plan was short-lived. Factors such as customer backlash, rejection by competitors (including FanDuel), and adverse analyst reaction forced DraftKings to back out of the plan.

Now, with even higher taxes in Illinois, FanDuel has flipped its stance. While it’s likely to follow, DraftKings might wait and watch closely if FanDuel receives similar backlash.

The post FanDuel’s Illinois Surcharge Could Set National Precedent, DraftKings May Follow appeared first on CasinoBeats.

Bally’s and Hard Rock are among eight candidates vying for three highly coveted licenses. The licensing process is in a critical stage, with the final decision expected by the end of the year.

Bally’s Bronx Casino Hopes Could Be Over

On July 14, the New York City Council voted 29-9, with four absentees, to reject Bally’s rezoning application for its project at the site of the former Trump Golf Links at Ferry Point. The decision effectively ends Bally’s hopes for building a $4 billion casino resort.

Republican Councilwoman Kristy Marmorato, whose district includes the potential casino site, introduced a motion to disapprove the project.

Last month, Marmorato was among the Council members voting against Bally’s plan to advance to the state legislature. While the Council initially refused to vote on it, New York City Mayor Eric Adams helped the bid move forward with a last-minute home-rule message.

After the vote, Marmorato said that the developers “came to the table a little too late, with promises too vague and a process too flawed to rebuild the trust that was already lost in our community.”

She added: “This is not real economic development. This is not housing, a hospital or community improvements. It’s a casino.”

Bally’s CEO Soo Kim called the vote “incredibly disappointing,” noting:

“We had met the council member’s ask in terms of what exceptional community benefits they wanted. That ask was moving the goalposts from the prior ask, which we had met as well,” he said. “It’s sort of nutty. What more can we do than meet the ask?”

Without zoning approval, Bally’s cannot advance in the licensing process, which includes multiple hearings by Community Advisory Committees and review by the Gaming Facility Location Board.

Metropolitan Park Bid Faces Unusual Hurdle

While Bally’s appears to be out of the running, another major contender, the $8 billion Metropolitan Park proposal in Queens, backed by Mets owner Steve Cohen and Hard Rock International, could face unexpected turbulence.

On the same day as Bally’s rezoning defeat, Hard Rock announced that it had suspended Senior Vice President Alex Pariente and two other employees amid anti-money-laundering (AML) allegations.

First reported by Casino.org, Pariente allegedly was involved in significant money structuring practices and facilitating questionable gambling activities at Hard Rock’s property in Punta Cana, Dominican Republic.

In one instance, one employee, at Pariente’s direction, took a $100,000 deposit from a Chinese national. She then broke it into 33 separate $3,000 deposits. These actions violated AML regulations.

Hard Rock became aware of the allegations by whistleblower Robert “R.J.” Cipriani, also known as RobinHood702 in gambling circles. Cipriani is a high-stakes gambler and federal informant with a history of exposing compliance failures.

The whistleblower previously flagged similar misconduct at MGM properties, involving then-president Scott Sibella, and later at Resorts World Las Vegas. Sibella’s AML misconduct had cost his career and substantial fines for both operators.

Although Metropolitan Park’s application is considered a strong contender due to Cohen’s political ties, Pariente’s suspension could pose a reputational challenge to the bid.

Regulators will likely scrutinize Pariente’s actions and AML allegations when vetting the license applicants. As part of the licensing process, the New York State Gaming Commission conducts thorough background checks on corporate executives.

Also, while Hard Rock has acted swiftly, rival bidders could seize on the controversy to question the bid’s suitability.

The post Bally’s Bronx Casino Bid Collapses; Hard Rock Faces Scrutiny in Queens appeared first on CasinoBeats.

As the state prepares to award three highly sought-after downstate casino licenses, these impressive sports betting figures underscore the enormous potential of New York’s gaming market.

Notably, five of the eight casino bidders also operate mobile sportsbook platforms, giving them a unique advantage in both market familiarity and customer reach. Despite facing one of the highest tax rates in the country, New York remains a magnet for operators eager to tap into its massive betting base.

But how are these operators performing — and could their success in online sports betting give them a critical edge in the fierce race for these coveted casino licenses?

June 2025 Sports Betting Revenue

New York’s sports betting market generated $1.65 billion in handle in June, the lowest figure in over a year. However, despite the handle dip, operators maintained a record 12.5% hold rate.

As a result, the state generated gross gaming revenue of $206.5 million, a 54% year-over-year increase. As the state collects 51%, tax receipts were $105 million.

June marked the second consecutive month surpassing $200 million in gross revenue, and the fifth in the past year. In that period, mobile sportsbooks have contributed over $1.1 billion in tax revenue.

As expected, FanDuel and DraftKings dominated the market, together capturing 78% of the market. For the trailing 12 months, the market leader FanDuel alone has surpassed $1 billion in gross gaming revenue.

How the Casino Bid Hopefuls Fared

MGM Empire City

Among the casino bidders, BetMGM, co-owned by MGM Resorts and Entain, reported approximately $116.6 million in handle (about 7% market share) and $11.9 million in gross gaming revenue in June. That represented a 16% increase year-over-year in handle and an impressive 74% increase in revenue.

MGM Resorts plans to transform its Empire City Casino in Yonkers into a full-scale casino. At $2.3 billion, the transformation is the lowest-valued. Still, it is among the front runners due to the lower resources needed to convert. Additionally, the project already contributes tax revenue and has little opposition.

Caesars Times Square

While the New York Gaming Commission did not post Caesars Entertainment’s Caesars Sportsbook monthly revenue figures on its website, it did load the weekly ones. They show that Caesars Sportsbook closely trailed BetMGM.

While Caesars’ handle remained mostly flat compared to June 2024 (about 5 or 6% market share), its gross gaming revenue grew significantly, thanks to improved hold rates and marketing. (As the weeks did not coincide with the whole month, full figures cannot be given.)

Caesars’ casino proposal, Caesars Times Square, developed in partnership with SL Green and Jay-Z’s Roc Nation, aims to transform Times Square. While its “elevated entertainment” concept promises an economic boost for the neighborhood, it faces strong opposition, especially from the theater industry.

The Avenir

Rush Street Interactive, which operates the BetRivers platform, is a partner in The Avenir bid in Manhattan. For June, the mobile platform brought in $40.4 million in handle (about 2.5% market share) and $3.7 million in revenue.

These figures represented a 41% decrease in handle, but a 48% increase in revenue.

The Avenir, a $5 billion Manhattan project which includes a 1,000-room Hyatt Destination hotel, is being developed by Silverstein Properties, which is behind One World Trade. The developer is among the most politically connected companies in New York, which could help its cause.

Still, it faces various West Side community organizations and local politicians’ opposition.

Bally’s Bronx

Bally’s Corporation’s Bally Bet sports betting platform is among the smaller players in the New York market. In June, it generated $9.9 million in handle (approximately 0.6% market share) and $791,201 in revenue. Still, that represented a 44% yearly increase in handle and a 20% rise in revenue.

Bally’s bid is relying on job creation and an economic boost for the Bronx. As a result, it has received support from most Democratic leaders in the Bronx. The Trump Organization also stands to benefit financially if Bally’s receives a license from the land-purchase deal.

The company faced concerns about whether it could finance the $4 billion project. However, it recently announced a $3.2 billion sale of its International Interactive Division to Intralot, which will give it a much-needed financial injection.

Resorts World New York City

June was Resorts World Bet’s last month, as it announced it would shut down on June 30. That reflected in the platform’s performance, which ranks last in the state in terms of market share. In June, it generated only $2.75 million in handle (about 0.17% market share) and $229,357 in revenue.

These figures represented a 63% year-over-year decline in handle and a 60% decline in revenue.

The exit of its sportsbook has not steered its parent company, Genting Group, to pursue a full casino license for its Queens racino.

Like MGM’s Empire City, many consider Resorts World New York City a frontrunner as it’s an operational racino. It has minimal opposition and strong support among local politicians and organizations.

Could Knowledge of NY Consumers Help with Casino Applications?

While the five operators trail FanDuel and DraftKings in sports betting revenue, their sports betting experience could give them an advantage: deep knowledge of New York bettors.

Their existing data covers wagering patterns, peak betting seasons, promotional effectiveness, and player demographics.

They can leverage this information to cross-promote between the digital platform and physical property, creating tailored experiences to resonate with local players. For example, through their loyalty programs, they can offer targeted bonuses or invite top online bettors to exclusive in-person events.

Additionally, familiarity with the brands could enhance consumer engagement, which in turn could help satisfy community advisory committees (CACs) that may seek operators committed to regional economic growth and responsible gaming.

What Lies Ahead

New York expects to announce the three casino license winners by the end of the year. Before that, the license hopefuls must get approval from their CACs, which were recently formed.

These committees must hold at least two public hearings to gather community input. During this stage, committees can also request that applicants modify or adjust their proposals to better address community concerns.

After the hearings, the CACs will vote on the licensees, with a two-thirds approval requirement. The applications approved by CACs will then move to the Gaming Facility Location Board for final recommendation.

The post New York Sportsbooks See a 54% YoY Revenue Increase in June: How Do the Casino Bid Hopefuls Fare? appeared first on CasinoBeats.

BETZ extended its year-to-date lead over the S&P 500 Index, which lost momentum and closed slightly lower last week amid fears of escalating trade tensions.

This Week’s Biggest Gains:

Esports Entertainment Surges Despite Financial Struggles

Esports Entertainment Group was the top gainer among the gaming stocks in our coverage universe, gaining 21.6% over the past week. 

The stock has been highly volatile over the past few weeks. Two weeks ago, it was down 16.2%, but following last week’s gains, the stock is up over 56% for the year. Still, it trades approximately 30% below its 52-week high.

The company, which voluntarily delisted from Nasdaq last year and now trades OTC, has stopped publicly reporting earnings. The stock’s low trading volumes and high volatility make it prone to manipulation and speculation. 

Despite last week’s rally, the company remains in severe financial distress, with ongoing losses, mounting debt, and negative shareholder equity.

DraftKings Rebounds on Valuation Optimism

DraftKings was among the other major gainers with the stock rising 5.4% last week. 

It was among the biggest losers in the preceding week on fears that the provisions of the One Big Beautiful Big Act (OBBBA) would dampen gambling activity.

For context, the Act mandates a 90% deduction for losses (versus the previous regime of 100% deduction), which could result in gamblers paying taxes even if they don’t make a profit.

Investor sentiment improved after analysts argued the sell-off was overdone. 

Morgan Stanley raised its target price to $52 while maintaining the “overweight” rating, while Citi maintained its “buy” rating and $58 target price on DraftKings. 

The brokerage sees DraftKings shares as undervalued in light of Flutter’s acquisition of Boyd Gaming’s 5% equity stake in FanDuel, which values FanDuel at $31 billion. 

According to Citi, DraftKings trades at a 7% discount to the implied valuation of 17.4x 2026 EV-EBITDA for FanDuel.

Mizuho also echoed similar views and said that while FanDuel and DraftKings have similar market share, the former’s implied market capitalization of $40 billion in the transaction is roughly twice DraftKings’ market capitalization.

Wynn Resorts Extends Gains

While it didn’t repeat the 14% growth from last week, Wynn Resorts’ stock rose over 5.2% last week, which extended its year-to-date gains to 29%. 

On Monday, Wynn Resorts stock rose nearly 3% after Goldman Sachs reinitiated coverage with a Buy rating and $122 price target.

Goldman Sachs joined JPMorgan, which also initiated coverage of gaming stocks last month. Apart from Wynn, Goldman Sachs put a “buy” rating for Caesars Entertainment and a “neutral” rating for Las Vegas Sands. The brokerage, however, rated MGM Resorts as a “sell.”

Golden Entertainment Turns Positive for the Year

Golden Entertainment stock gained nearly 5% last week, even as there wasn’t any company-specific news. The company did pay a 25-cent dividend the previous week, but its record date was June 25. Nonetheless, after last week’s rise, the stock has turned positive for the year.

Golden Entertainment is focused on deleveraging its balance sheet through the sale of non-core assets, allowing the company to focus on its operations in Nevada primarily.

The Week’s Biggest Losers

Skillz Sinks on Broader Market Weakness

Skillz was the worst-performing stock in our coverage universe and lost over 7% last week. While there was no company-specific news last week, the stock traded on a weak note amid broader market weakness. 

Moreover, as a loss-making enterprise, Skillz was particularly under pressure last week. It has a 5-year beta of 2.7x, which means that it is 2.7x as volatile as broader markets.

The company’s paying monthly active users have fallen by over 41% over the last two years. It has been cutting marketing and operating expenses to reduce cash burn, but it has yet to show evidence of a turnaround.

Gambling.com Declines Amid Tariff Fears

Gambling.com Group Ltd was another major loser, falling nearly 5% last week. The stock was roughly flat for the week but fell over 4% on Friday amid US-EU tariff escalation rumours, which led to a market sell-off.

Playtika Slides Further

Playtika Holdings is back on the list of the biggest losers as the stock lost 4.8% last week, despite no major company-specific news. 

The stock is now down 32% for the year amid concerns that the company’s user base is shrinking due to its reliance on older mobile game titles and questions about long-term growth prospects. 

Penn Entertainment Falls on Regional Revenue Drop

Penn Entertainment rounded up the top losers, shedding 3.5% for the week. The stock was in the green until Thursday but fell 7.6% on Friday after Indiana and Iowa reported a year-over-year decline in gaming revenue for June.

Additional tariff-related worries further pressured the stock, which underperformed compared to rivals such as Sands Las Vegas, DraftKings, and MGM Resorts. 

Other Major Industry Developments Last Week

On Wednesday, Blackstone-backed gaming company Cirsa went public in Barcelona. 

While the IPO was oversubscribed multiple times, it closed at the IPO price of €15 on its first trading day and has remained flat since then, closing at the same level last week. 

While the IPO saw strong interest from investors, concerns over the company’s high debt pile, heavy reliance on Latin American markets and online gaming, and rich valuations dampened sentiments.

In another development, Senate Republicans blocked attempts to roll back the gambling tax provisions in the OBBBA. The new rules, which will take effect next year, are expected to generate $1.1 billion in tax revenue over the next eight years.

The post Gaming Stock Outlook: Esports Leads Gainers While Skillz Plunges appeared first on CasinoBeats.

One state that has flown under the radar but is now seeing a major shakeup is West Virginia. Recently, the Mountain State’s Attorney General, John McCuskey, shared that he has sent 47 subpoenas to sweepstakes casinos.

He told the audience at the National Council of Legislators from Gaming States summer meeting in Louisville, KY, that while none have responded, 19 have exited.

Casinobeats has since confirmed that the number is even higher, making West Virginia one of the states that have experienced a mass exodus of sweepstakes casinos in recent months.

Who Has Exited West Virginia?

Over 20 sweepstakes casinos have exited West Virginia, with Chance and sister site Punt.com among the latest. The platforms that Casinobeats has confirmed to list the state as an ineligible jurisdiction per terms and conditions include:

• Baba Casino
• Carnival Citi
• Chance and sister site Punt.com
• Funrize and sister sites NolimitCoins, FunzCity, Fortune Wheelz, and Tao Fortune
• Legendz
• McLuck Casino and sister sites Hello Millions, Mega Bonanza, Jackpota, and Spinblitz
• Modo.us
• Play Fame
• Pulsz Casino and Pulsz Bingo
• Rolling Riches
• Sidepot
• Spree
• Stake

Notably, High 5 Casino‘s July 2 terms and conditions still list West Virginia as an eligible jurisdiction. However, in February, the operator announced plans to withdraw from West Virginia and other states with regulated online casinos, likely due to its parent company High 5 Games content license suspension in Connecticut.

High 5 Games later settled with the Connecticut Department of Consumer Protection Gaming Division.

Many Exit Quietly — Others Resist

While McCuskey has not shared which operators he’s sent the subpoenas to, if the ones that have already exited are on the list, it suggests that at least half have yet to comply.

This pattern is not uncommon. Some sweepstakes casinos respond quickly and cautiously to legal action, while others continue operating despite regulatory warnings.

For example, while it recently exited Delaware after a cease-and-desist order, VGW, the parent of Chumba Casino, LuckyLand Slots, and Global Poker, ignored a previous order for two years. The company has similarly ignored a June order in Mississippi and a March one in Maryland.

While it listed Maryland as an ineligible state this month, Stake.us ignored a 2024 cease-and-desist order there for over a year.

Other states, including New York, Connecticut, and most recently New Jersey, have passed a law explicitly banning sweepstakes casinos. Despite that, there are still platforms operating in those states.

As of now, only Crown Coins, Luckybird.io, and Spinfinite still list New York, while nearly a dozen still accept Connecticut players. Meanwhile, just a handful of platforms have left New Jersey.

The post Over 20 Sweepstakes Casinos Quietly Exit West Virginia Amid Crackdown appeared first on CasinoBeats.

While the IPO was oversubscribed multiple times, it closed at the IPO price of €15 on its first trading day and has remained flat since then. 

Here’s everything we know about the IPO and Cirsa, which is the second-largest listing in Spain this year, in a market that has been lackluster for new listings in Europe.

Cirsa Stock Falls Below IPO Price

Cirsa shares briefly rose to €16 on their debut day, or 6.7% higher than their issue price, but quickly lost momentum. The stock also briefly fell below its IPO price today.  

Typically, massively oversubscribed IPOs, such as Cirsa, deliver substantial listing gains. 

However, companies often tend to price the IPO at higher prices as the demand for shares outweighs the supply. That leaves less room for post-listing upsides.

While investors haven’t seen immediate gains in the Cirsa IPO, Blackstone, which acquired the company for an enterprise value of around €2 billion in 2018, has made decent returns.

According to reports, at the IPO price, the equity value in Cirsa IPO was 2.5 times Blackstone’s original investment.

Nonetheless, Cirsa’s listing is a boost not only to the gaming sector but also to European stock markets, where IPOs have plummeted to 46 in the first half of the year, compared to 61 in the same period last year, according to Dealogic.

What Cirsa Plans to Do with the Funds

Cirsa raised €400 million in capital through the IPO, which could increase to €521 million if the overallotment option is fully exercised. At a minimum, 18% of Cirsa’s shares will be freely tradable on the market. 

The company plans to use the proceeds to reduce its debt, which currently stands at €2.37 billion, and aims to achieve a net leverage ratio of between 2.0x and 2.5x.

Additionally, Cirsa plans to consider acquisitions worth between €400 million and € 500 million between 2025 and 2027. 

The company has identified 100 potential targets, primarily in Latin America and Spain.

Acquisitions have been a key growth pillar for Cirsa, and the company has acquired 130 companies since 2015, spending a cumulative €1.2 billion. 

Notable recent deals include sports betting operator Apuesta Total in Peru, as well as Casino Portugal.

A Diversified and Growing Business

Cirsa has globally diversified operations. Spain is the company’s biggest market, where it’s a casino market leader. 

The company also operates in Italy, Morocco, Latin America, Portugal, and Puerto Rico. 

The company’s online segment is its fastest-growing business segment, accounting for 22.5% of its total operating net revenues in the first quarter of this year.

Looking at EBITDA contributions: 

• Casino business: 58% of EBITDA with a 42% margin.
• Slots Spain (slot machines): 27% of EBITDA, 46% margin.
• Online gaming: 12% of EBITDA, 20% margin.

The online gaming business is still evolving and navigating regulatory uncertainty; while its margins are arguably lower, it is also the fastest-growing segment for Cirsa. 

First-quarter revenues rose by 54.8% year-over-year, supported by expansions into new markets, including Peru and Portugal.

Cirsa has a strong track record of growing its EBITDA, with the metric increasing for 67 consecutive quarters (excluding quarters affected by the COVID-19 lockdown).

Last year, the company posted €2,150 million in operating revenue (8% year-over-year increase) with an operating profit of €699 million(up 11% year-over-year). 

Cautious Investor Reaction Despite Strong Fundamentals

While Cirsa’s IPO was heavily oversubscribed, investors remained cautious after the debut. The stock reached €16 but closed unchanged, reflecting hesitation. 

Some investors raised concerns over Cirsa’s relatively high debt and heavy reliance on Latin American markets and online gaming. 

Others noted that Cirsa’s estimated post-IPO value of roughly €2.5 billion places the enterprise value-to-EBITDA in the approximately 7.5x range, providing limited room for short-term upside. 

Notably, several prominent Spanish fund managers opted out of the IPO. They cited ethical or regulatory discomfort. 

Dividend Plans in 2026

Cirsa does not currently pay dividends, but the company intends to do so in 2026, targeting a dividend payout of 35% of its adjusted net profits. 

The company has a cash conversion of 74% which is quite robust. In its IPO prospectus, the company said: 

“This strong cash generation provides a platform for a ‘virtuous circle’ of profitable growth, while enabling CIRSA to deleverage and still maintain a disciplined and attractive dividend policy.” 

The post Cirsa Has a Lacklustre Debut Despite Oversubscribed IPO appeared first on CasinoBeats.

These local oversight panels will play a crucial role in determining which of the eight casino applicants will proceed in the process by assessing whether they align with community interests and priorities.

What are Community Advisory Committees?

CACs are local oversight bodies that ensure each application receives a thorough community review before being advanced.
Six members comprise each CAC. Key government officials appoint them:

• The Governor
• The Mayor of New York City
• The local State Senator
• The local State Assembly Member
• The Borough President
• And the City Council Member representing the district

In the case of MGM Empire City in Yonkers, the committee has five members because it falls outside the jurisdiction of New York City. The members are appointed by the Governor, the County Executive, the State Senator, the State Assembly Member, and the City’s Chief Executive (Yonker’s Mayor).

The CAC’s primary role is to evaluate whether each application aligns with local needs and priorities. The committees must hold public meetings to consider community feedback and input.

Without CAC approval, casino license applications cannot be advanced to New York’s Gaming Facility Location Board for final consideration.

Who are the Picks?

The Avenir

• Gov. Kathy Hochul – Angel Vasquez (Deputy Secretary for Union Relations, Governor’s Office)
• New York City Mayor Eric Adams – Nabeela Malik (Deputy Director, City Planning for Manhattan)
• State Sen. Brad Hoylman-Sigal – Richard Gottfried (Retired Assembly Member)
• New York City Council Member Erik Bottcher – Quentin Heilbroner (Bottcher’s Community Board  4 Liaison)
• Assembly Member Tony Simone – Matthew Tighe (Simone’s Chief of Staff)
• Manhattan Borough President Mark Levine – Madeleine McGrory (Director of Land Use Planning, Manhattan BP Mark Levine)

Caesars Palace Times Square

• Gov. Kathy Hochul – Peter Hatch (Deputy Secretary of Human Services & Mental Hygiene, Governor’s Office)
• New York City Mayor Eric Adams – Laura Smith (Chief Counsel, Advisory Committee on Judicial Ethics)
• New York City Council Member Erik Bottcher – Carl Wilson (Bottcher’s Chief of Staff)
• State Sen. Liz Krueger – Richard Gottfried (Retired Assembly Member)
• Assembly Member Tony Simone – Matthew Tighe (Simone’s Chief of Staff)
• Manhattan Borough President Mark Levine – Chris Carroll (Levine’s Chief of Staff)

Freedom Plaza

• Gov. Kathy Hochul – Nichols Silbersack (Deputy Policy Director, Governor’s Office)
• New York City Mayor Eric Adams – Jennifer Sta. Ines (Manhattan Deputy Borough Commissioner)
• New York City Council Member Keith Powers – Molly Hollister (Former Chair, Manhattan Community Board 6)
• State Sen. Kristen Gonzalez – Sandra McKee (Chair, Manhattan Community Board 6)
• Assembly Member Harvey Epstein – Reshma Patel (Board Member, Manhattan Community Board 6)
• Manhattan Borough President Mark Levine – Celeste Royo (Senior Urban Planner for Manhattan Borough

Bally’s Bronx

• Gov. Kathy Hochul – Rafael Salaberrios (SVP, Small Business Capital Access, Empire State Development)
• New York City Mayor Eric Adams – Paul Philips (Director of Student Communication, Hunter College)
• New York City Council Member Kristy Marmorato – Danielle Volpe (VP & General Counsel, Posilico Civil)
• State Sen. Nathalia Fernandez – Alex Porco (Fernandez’s Chief of Staff)
• Assembly Member Michael Benedetto – Matthew McKay (Benedetto’s Deputy Chief of Staff)
• Bronx Borough President Vanessa Gibson – Lisa Sorin (President, Bronx Chamber of Commerce)

Metropolitan Park

• Gov. Kathy Hochul – Gregory Anderson (Deputy Director of State Operations, Governor’s Office)
• New York City Mayor Eric Adams – Lin Zeng (Director, NYC Dept. of City Planning, Queens office)
• State Sen. Jessica Ramos – No nominee named yet
• Assembly Member Larinda Hooks – Herself
• Queens Borough President Donovan Richards – Himself
• New York City Council Member Francisco Moya – Himself

The Coney

• Gov. Kathy Hochul – Portia Henry (Assistant Secretary for Transportation, Governor’s Office)
• New York City Mayor Eric Adams – Alex Sommer (Director, Dept. of City Planning, Brooklyn office)
• State Sen. Jessica Scarcella-Spanton – Herself
• Assembly Member Alec Brook-Krasny – Marissa Solomon (Director, Pythia Public)
• Brooklyn Borough President Antonio Reynoso – Himself
• New York City Council Member Justin Brannan – Himself

MGM Empire City

• Gov. Kathy Hochul – Maria Fernandez (Deputy Secretary of Education, Governor’s Office)
• Yonkers Mayor Mike Spano – James Cavanaugh (Strategic Planning, Empire Strategic Planning)
• State Senate Majority Leader Andrea Stewart-Cousins – Larry Wilson (General Manager, Port Authority of NY & NJ)
• Assembly Member Nader Sayegh – Frank Jereis (Executive Director, Yonkers Democratic Party)
• Westchester County Executive Ken Jenkins – Joe Apicella (Executive VP, MacQuesten Development)

Resorts World New York City

• Gov. Kathy Hochul – Stevens Martinez (Deputy Director, Intergovernmental Affairs, Governor’s Office)
• New York City Mayor Eric Adams – Nicole Garcia (NYC DOT Borough Commissioner, Queens)
• State Sen. James Sanders Jr. – Himself
• Assembly Member Stacey Pheffer Amato – Herself
• Queens Borough President Donovan Richards – Himself
• New York City Council Speaker Adrienne Adams – Betty Braton (Chair, Queens Community Board 10)

CAC Appointees With Pre-Declared Positions

While most appointees have not publicly stated positions on their assigned projects, a few stand out.

The Manhattan Properties

The Manhattan bids, especially Caesars Times Square, have generally created a sharp divide in opinions, gathering lots of support but also many opponents. Still, most CAC members have not previously commented or expressed a stance on this issue.

Richard Gottfried, who sits on both Caesar’s Times Square and The Avenir’s committees, has historically raised concerns about the expansion of gambling, but has not directly spoken against specific proposals.

Manhattan Community Boards 4, 5, and 6 have generally been skeptical of large-scale casinos, citing congestion and negative social impacts.

Meanwhile, Sandra McKee, who’s part of the Freedom Plaza committee, has previously issued letters opposing large-scale developments in the district.

The Outer Borough Proposals

In Queens, State Sen. Jessica Ramos has notably not picked a committee member for the Metropolitan Park project. In the past, Ramos has been critical of the proposal due to concerns about the loss of parkland and its community impact. While she’s softened her stance, the fact that she hasn’t picked a committee representative could signal opposition.

Donovan Richards Jr., who sits on the Metropolitan Park and Resorts World CACs, has not publicly endorsed any of the casinos, but has historically signaled openness to large-scale developments that create jobs.

In Brooklyn, Antonio Reynoso, who sits on The Coney’s CAC, has called for strong community engagement but has been cautious about directly commenting on the project.

Justin Brennan has also been cautious with remarks about The Coney, but has stressed the importance of local jobs and potential revenue. He remains publicly neutral.

Meanwhile, Marissa Solomon volunteers at the Coney Island Museum, which has been an opponent of The Coney casino.

In the Bronx, Chamber of Commerce President Lisa Sorin has not endorsed Bally’s Bronx Casino but has been generally supportive of job creation in the community.

Meanwhile, while Danielle Volpe has not commented directly on Bally’s project, she was appointed by New York City Council Member Kristy Marmorato, who voted against it in the council’s vote on whether to advance the company’s casino proposal to the state legislature.

The Two Racinos

The two racinos, MGM Empire City and Resorts World New York City, are considered frontrunners by many and generally have more favorable opinions from local communities and politicians.

Two of the Resorts World CAC members, Betty Braton and James Sanders Jr., have previously declared support for the project. Both cite the contribution to the local economy and job creation.

While he has not explicitly endorsed MGM, CAC member Frank Jereis has been historically supportive of Yonkers’ development projects. In the past, Jereis has supported Empire City’s upgrades and modernisation efforts.

What Happens Next?

Now that the CACs have been appointed, the licensing process can move to the next phase: public hearings.

According to the New York Gaming Facility Board, CACs are required to hold at least two public meetings to gather community input. During this stage, committees can also request that applicants modify or adjust their proposals to better address community concerns.

Following the hearings, the committees will vote on whether to approve each project (likely in late August or September). The votes are contingent on other requirements, such as zoning and environmental reviews, all of which must be finalized by September 30.

To pass the CAC stage, an application must receive approval from at least two-thirds (four out of six) of the members. For MGM Empire City, which has a five-member CAC, the project still needs four votes to meet the two-thirds requirement.

The applications approved by their CACs will then move to the Gaming Facility Location Board for final recommendation. The board is expected to announce the winners by the end of the year.

The post The Next Step in New York’s Casino Licensing Process: Advisory Committees Take Shape appeared first on CasinoBeats.

Melco Resorts Leads the Pack

With gains of over 21%, Melco Resorts was the best-performing gaming stock in our coverage universe. 

The stock was also among the biggest gainers in the preceding week and has now extended its year-to-date gains to nearly 48%. Last week’s rise could be attributed to optimism over strong growth in the Macau market.

On Tuesday, Macau reported a 19% YoY increase in June gaming revenue, which was over twice what analysts were expecting. 

As a result, on July 1, JP Morgan Chase & Co. upgraded Melco from a “neutral” rating to an “overweight.” On July 7, Wall Street Zen upgraded the stock from a “hold” rating to a “buy” rating.

Outside Macau, another factor contributing to the surge in share price was Melco’s announcement on Monday that it will open its City of Dreams Sri Lanka resort in early August. 

Douyu Stock Rises, Still Down Year-To-Date

Douyu International Holdings was the second-largest gainer, with the stock adding 18% last week, thanks to an over 10% spike on Friday..

Despite recent gains, the stock is down over 32% for the year and approximately 62% lower than its 52-week high due to concerns over the company’s financial health.

Wynn, MGM, and Las Vegas Sands Ride Macau Wave

Wynn Resorts gained 14% last week, with the gains primarily attributable to the positive June revenue update from Macau. The stock is now up 22.6% for the year, which, although below BETZ, is well ahead of the broader market.

MGM Resorts also outperformed last week after the update from Macau, gaining more than 11%, which helped it bridge its year-to-date losses and turn positive for the year.

Also, with an 11% growth, Las Vegas Sands rounded out the top beneficiaries of the strong Macau Results.  

Bally’s Pops on Intralot Deal

Bally’s Corporation was among the major gainers last week, with the stock increasing by over 12%. 

On Tuesday, Bally’s Corporation shares rose almost 16% after Intralot S.A. announced that it would acquire the company’s International Interactive division for €2.7 billion, paid in a mix of cash and stock.

Despite the influx of cash to support mounting debt, Fitch Ratings placed Bally’s on rating watch negative, indicating Bally’s financial stability may deteriorate because it is selling a profitable unit and becoming more exposed to other risks.

Huya Continues to Sink, DraftKings Feel Big Beautiful Bill’s Effect

Huya lost a third of its market capitalization last week, continuing its dismal run from the previous two weeks. The stock was quite volatile last week, plummeting 36% on Monday, followed by a rise of over 13% on Tuesday.

Even a generous ex-dividend payout of $1.47 (part of a planned $400 million return to shareholders) could not save the stock from the Monday freefall.   

The NYSE applied “due bill” procedures for the dividend, which mandated that those who bought the stock on or before the record date of June 17 but before the payment date of July 1 were eligible for the dividend, even if the trades were settled after July 1. The procedure was implemented due to the high dividend yield compared to the stock price.

While the fat dividend is succor, considering the stock trades at under $2.50, Huya has been a long-term underperformer and trades at just about one-tenth of its all-time high. The tech crackdown in China, coupled with a structural slowdown in the world’s second-biggest economy, has taken a toll on the stock.

Moreover, Huya faces intense competition from Chinese rivals. It has also posted GAAP losses for three consecutive years, which has made the market apprehensive about the company’s future.

Sea Limited Struggles with E-Commerce Headwinds

Sea Limited was among the other prominent losers, losing 5.7% last week. 

The company is not a pure-play gaming company; while its subsidiary, Garena, is in the gaming business, it is a global tech conglomerate with a presence in e-commerce and the fintech space. 

The recent decline is attributed to concern over higher competition in the other two businesses, particularly e-commerce, where TikTok Shop is gaining ground.

Additionally, several institutions, including the Teacher Retirement System of Texas and Sumitomo Mitsui Trust, reduced their holdings, which triggered further pressure.

DraftKings Hit by New Gambling Tax Concerns 

DraftKings stock lost 3.5% last week, which is linked to the passage of President Trump’s signature tax and spending bill, dubbed the One Big Beautiful Big Act (OBBBA). 

The Act would raise taxes for the gambling industry, as it mandates a 90% deduction for losses, which could result in gamblers paying taxes even if they don’t make a profit. For context, under current regulations, all gambling losses can be deducted from income up to the total winnings.

“I’ve spoken to many clients, and they’re very concerned,” said Zachary Zimbile, an accountant with experience in gambling regulations. He added, “If you add a 10% penalty, it’s going to eat into a lot of their profit.”

Separately, last week, DraftKings announced the launch of its Responsible Gaming tool named “My Budget Builder,” which lets players set customized limits and receive easy reminders.

Genius Sports Sees Volatility Despite Index Inclusion

Genius Sports also closed in the red last week despite its inclusion in the Russell 3000 Index. Inclusion in any index means that passive funds tracking that index must necessarily buy the stock in the same percentage as the index.

While usually stocks rise on inclusion – and Genius Sports did gain on Monday (the day it was included in the index) – it subsequently pared gains amid concerns over the impact of Trump’s tax bill provisions on gambling revenues.

The 3% decline for the week showcases the recent volatility of the stock. In the past few weeks, it has posted growth followed by declines and vice versa. 

Still, Genius Sports’ stock is performing well for the year. It’s up almost 8% over the past month, primarily driven by a new NFL deal, and for the year, it has grown over 18%. 

The post Gaming Stock Outlook: Melco, Douyu, Wynn Soar, Huya Tanks appeared first on CasinoBeats.